Gov't says Zipcar may have rented unrepaired recalled van

MarketsAssociated Press

The U.S. government's road safety agency says it will audit Zipcar after getting information that the company rented at least one recalled vehicle without making repairs.

The National Highway Traffic Safety Administration says in a document posted on its website Friday that the Traffic and Motor Vehicle Safety Act prohibits rental car companies from leasing or selling recalled vehicles until repairs are made.

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The agency says the investigation involves a June 2017 U.S. recall of about 373,000 Ford Transit vans. A coupling connecting the transmission to the driveshaft can fail, causing the van to lose power. It also can damage brake and fuel lines.

A spokeswoman for Zipcar did not immediately return messages seeking comment.

The subsidiary of Avis Budget Group rents vehicles by the hour or day.